The Puerto Rico Film Commission has extended its unrivaled tax credit program.
Production Tax Credits
40% production tax credit on all payments to Puerto Rico resident companies and individuals
20% production tax credit on all nonresident qualified spending
Preferential Tax Treatment
Persons engaged in qualifying projects are eligible for the following preferential tax rates or exemptions:
- Fixed income tax rate of between 4% and 10%
- Nonresidents become residents after 183 days living in Puerto Rico and qualify for the 40% Tax Credit
- 100% exemption on dividend taxes
- 90% exemption from municipal and state taxes on property
- 100% exemption from municipal license taxes, excise taxes and other municipal taxes
- Qualifying projects: video games, feature films, short films, documentaries, television programs, series in episodes, mini-series, music videos, national and international commercials, recorded live performances and original sound track recordings and dubbing
- $100,000 minimum spend requirement per project
- If 50% or more of production is developed in the island, development payments to Puerto Rico resident companies and individuals and nonresident “Above-the-Line” can qualify
- No per project or individual wage caps
- No cap on credits for payments to nonresident qualified spending. Payments made to nonresident qualified spending are subject to a 20% withholding over their Puerto Rico sourced income. See the Nonresident qualified spending Fact Sheet for more information.
- The annual cap on credits for payments to Puerto Rico resident companies and individuals is $50 million (which may be expanded up to $350 million if incurred partially in a Film Development Zone)
To apply for Puerto Rico’s production incentives, please see How to Apply.